Royal Bank of Scotland has increased the interest-free period on its Platinum
balance transfer credit card. We examine the deal to see how it compares to
the competition.

This deal comes with a 2.9pc handling fee – £29 on a £1,000 transfer – when you move your balance across from another card, although there are no transfers permitted between RBS Group cards. After the end of the 24-month period, the interest rate will revert to the standard APR of 17.9pc.

Verdict:

If you have outstanding credit card debt, this offer could be an attractive alternative to paying hefty interest charges. However, do your sums in advance as it’s crucial to consider the transfer fees – and the number of months that it will take for you to pay back your previous debts – when comparing deals.

While it may financial sense to pay the high fee in order to benefit from the longer interest-free period in some cases, this comes down to the size of the balance and how long it will take you to pay off.

Related Articles

Those with a large balance that will not be repaid before the end of the 0pc term, for example, the high fee can be worth paying in order to secure a longer interest-free period, as it will buy you more time to pay down the debt. While on the other hand, those with a balance that you are likely to pay off more quickly, it may work out cheaper to keep the set-up costs low, so it is better to opt for a lower fee.

“This offer is a good deal if you need a long term to clear your credit card debts,” said independent personal finance analyst Andrew Hagger.

However, he pointed out that Barclaycard offered a more attractive deal on its Platinum card: this has a slightly longer interest-free period (at 25 rather than 24 months) and also a cheaper transfer fee. With Barclaycard, customers pay just 2.5pc rather than 2.9pc of the transferred debt. However, as this is a Platinum card it will only be available to those who have an excellent credit rating.